The series of induced changes in consumption spending that result from an initial change in autonomous expenditure is called the
A) induced effect.
B) autonomous effect.
C) multiplier effect.
D) consumption effect.

Question

Quizplus · Accepted Answer

The series of induced changes in consumption spending that result from an initial change in autonomous expenditure is called the multiplier effect. This is because the initial change in spending causes subsequent rounds of spending as income and consumption levels adjust.

The Series of Induced Changes in Consumption Spending That Result